The new purchasing power premium
We already informed you that the maximum margin for wage cost development (wage norm) for 2023 – 2024 has been set at 0%, which means that wages cannot increase on top of indexations and scale increases. This wage norm also serves as a framework for the biennial sectoral and enterprise wage negotiations.
Since there are companies that have achieved very nice results in 2022 and want to grant their employees something extra, the government has now created a new premium, the purchasing power premium.
What is it about?
The purchasing power premium can be granted by employers who have achieved a high profit or an exceptionally high profit in 2022.
The terms "high profit" and "exceptionally high profit" were not defined by the government. It now falls to the sectors to define these terms during the currently ongoing sector negotiations.
Once determined by the sector, companies that have achieved a "high profit" or an "exceptionally high profit" will have to/will be allowed to grant this premium according to the modalities determined by the sector.
There will only be a possibility to grant this premium to employees through an individual agreement if the sectors do not have any arrangement regarding the premium.
! As negotiations are currently in progress in the various sectors, we recommend that you do not proceed with the allocation of this premium for the time being, but wait for the end of the negotiations. Indeed, as a company, you risk a requalification of the premium into a gross wage benefit if you do not meet the conditions of the sectoral collective labour agreement.
This premium is allocated in the form of consumption vouchers and amounts to maximum € 500 for companies with a “high profit” and maximum € 750 for companies with an “exceptionally high profit”. Whether this amount or a lower amount is granted is also part of the negotiations in the sectors.
The purchasing power premium is exempt from taxes and social security contributions for the employee. The employer will have to pay a special employer social security contribution of 16,5%. This premium is deductible as a professional expense.
The premium can be granted from 1 June 2023 until 31 December 2023 and can be spent until 31 December 2024.
We will keep you further updated as soon as we have more news.
